8th October 2021 Morning Report

Friday 8th October 2021

The U.S. stock indices jumped on Thursday in a broad-based rally led by heavyweight technology shares, after a truce in the debt-ceiling standoff lowered concerns of a government debt default this month. Markets now await the closely watched monthly U.S. jobs report, which is due on Friday.

The S&P 500’s 11 sectors were all higher. Materials led the way, rising 2.1%, with consumer discretionary and healthcare also among the top performers. The Dow Jones Industrial Average rose 499.26 points, or 1.45%, to 34,916.25. The S&P 500 increased 1.38% to 4,423.65 and the Nasdaq Composite was also up 1.66%, to 14,742.96. Mega-cap stocks, led by Apple Inc, Amazon.com Inc and Microsoft Corp, provided the biggest boosts to the S&P 500. Early this week, heavyweight high-growth stocks fell sharply as Treasury yields rose. Next week investors will turn their attention to third-quarter earnings reports that start to arrive in earnest. Meanwhile, oil prices are trading at their highest levels in seven years, other energy forms, like coal, LNG, natural gas electricity and uranium, are holding at or near all-time highs. Many energy experts are seeing the oil price at $100 a barrel. Some see it well over $100 at $130 to $150 a barrel in the first quarter of next year.

West Texas Intermediate crude oil rose yesterday to about $77 per barrel, up from around $48 at the beginning of this year. The 10-year note yield reached 1.56% and the 2 -year treasury rate was at 0.307%.

Other key overseas markets were all up with the FTSE 100 +1.17%, the DAX + 1.85%, Stoxx600 +1.60%, the CAC40 +1.65%, Nikkei 225 +0.54%, the Hang Seng +3.07% and Shanghai +0.90%.

Morning Report 8 October 2021

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